When Donald Trump was elected president in November, many in the cryptocurrency community celebrated, buoyed by his commitments to deregulate the industry and support crypto innovators. Just prior to his inauguration, key players in the crypto sector gathered in Washington for a lavish event dubbed the Crypto Ball, delighting in their perceived insider status.

To the astonishment of many, Trump used the occasion to announce the launch of a new cryptocurrency called TRUMP. This asset, classified as a meme coin, lacks inherent value and experiences price volatility driven solely by market dynamics. Supporters of Trump and opportunistic traders have collectively generated billions in trading activity, fueled by enthusiasm, loyalty, and the promise of quick earnings. Companies associated with the Trump brand reportedly stand to gain billions in potential profits. The day following the coin’s launch, Melania Trump also unveiled her own meme coin, which similarly experienced dramatic price fluctuations. As of Wednesday, TRUMP was ranked the 25th most valuable cryptocurrency in the world by CoinMarketCap, trading around $43—down significantly from its peak of $75.

Read More: The Impact of Trump’s Victory on Cryptocurrency.

The rise of Trump’s meme coins has sparked significant interest in the crypto landscape, attracting a wave of newcomers. For some, these coins represent Trump’s commitment to the growth of the cryptocurrency sector. However, many in the crypto community have reacted negatively, perceiving it as a blatant attempt to exploit his supporters for profit. With Trump’s team controlling over 80% of the token’s supply, they wield considerable power over its market value. Although the team cannot cash out their holdings for several months, any such move could devastate the market and inflict heavy losses on everyday investors.

Long-time crypto enthusiasts worry that these tokens may further erode public trust in an industry already plagued by scams and unscrupulous actors. “The crypto space has empowered someone whose primary goal appears to be capitalizing on its potential for corruption,” says Angela Walch, a researcher and writer focused on cryptocurrency. “That’s truly embarrassing.”

At a press conference on January 21, Trump downplayed his role in the coin’s creation, saying, “I don’t know much about it other than that I launched it.” The Trump Organization did not respond to requests for comments, and a representative from the White House declined to provide any insight.

Legal experts and lawmakers are now raising ethical and geopolitical concerns about these tokens, arguing that they could potentially serve as tools for bribery and conflicts of interest. “These coins give him a way to gain financial favors from foreign adversaries, putting his personal interests above those of American citizens,” comments Puja Ohlhaver, a lawyer affiliated with Harvard’s Allen Lab for Democracy Renovation.

What Exactly Are Meme Coins?

TRUMP and MELANIA are perfect examples of meme coins—cryptocurrencies created by developers using blockchain technology. Their valuations are primarily driven by public perception and market demand. To generate excitement, the teams behind these coins often exploit popular memes that can quickly circulate on social media. The underlying belief is that if memes can influence culture and creativity, they should also have a financial value.

Famous examples include Dogecoin and Shiba Inu, with Dogecoin notably influenced by Elon Musk’s social media activity, which has sparked considerable price increases. The lack of intrinsic value makes meme coins especially volatile and speculative, attracting some investors who hope to profit from timing their purchases. However, buying at market highs can result in swift losses, and meme coins have been associated with scams that have led to substantial investor losses.

Supporters of Trump have historically utilized memes as marketing strategies. During his presidential campaign, a collective of content creators flooded social media with pro-Trump memes. Last summer, unofficial Trump-themed meme coins like Pepe (TRUMP) and Maga People Token (PEOPLE) exhibited price fluctuations, with some investors treating them as barometers of his electoral prospects.

Trump has previously leveraged cryptocurrency for profit as well. He started selling NFT trading cards in 2022, reportedly earning millions according to financial disclosure documents. In September, he announced World Liberty Financial, a cryptocurrency platform that has yet to launch. As of 2025, meme coins continue to offer a rapid avenue for aspiring crypto entrepreneurs to generate income.

The Launch of TRUMP

On January 18, just two days before his inauguration, Trump revealed his token through CIC Digital LLC, an affiliate of the Trump Organization, during the ongoing Crypto Ball. This unexpected announcement took the industry by storm. Nick O’Neill, a crypto entrepreneur attending the event featuring Snoop Dogg and Speaker Mike Johnson, shared a video on X, noting that very few attendees were aware of the token’s launch.

The following day, a buying frenzy ensued, leading to numerous complications. The Solana blockchain supporting the token and Coinbase, the exchange facilitating its trading, experienced significant transaction delays. “We didn’t foresee this level of demand,” tweeted Coinbase CEO Brian Armstrong.

Within just one day, the team managing the token, led by CIC Digital, claimed their holdings were worth approximately $51 billion on paper. (This figure is somewhat misleading, as attempting to cash out would likely lead to a price drop.) On the same day, Melania Trump introduced her own meme coin, MELANIA, which quickly caused TRUMP’s market cap to decline by billions as traders redirected their investments. Following MELANIA’s launch, TRUMP’s value plummeted from over $70 to around $45 in a single hour. Additionally, a counterfeit BARRON memecoin, unrelated to Trump’s youngest son, briefly reached a market cap of $460 million before crashing by 95%.

Some of Trump’s most fervent crypto supporters have accused him of exploitative practices regarding the coin’s launch. The essence of cryptocurrency lies in decentralization, yet Trump’s team controls over 80% of the TRUMP token’s supply. Another blockchain analytics firm, Bubblemaps, found that 89% of MELANIA’s tokens were held in a single wallet. Conor Gregor, a Coinbase executive, noted that Trump’s team earned $58 million solely from transaction fees.

“Trump’s credibility is completely compromised,” stated investment manager Michael A. Gayed. Anthony Scaramucci, a former communications director for Trump and a crypto supporter, added: “No one can seriously think this is beneficial for society.”

“There’s a lot of soul-searching happening in the industry right now,” observes Walch. “Sure, we’ve gained influence, but has it served any of the original goals we set out to achieve?”

Concerns Over Ethics and National Security

Critics beyond the crypto world have raised ethical concerns. Trump is now directly involved in an industry that he is responsible for regulating. (The affiliated companies assert that Trump tokens “are not investments or securities, but rather an ‘expression of support.’”) Opponents argue that Trump’s financial interests in crypto could prevent him from enforcing regulations that might adversely affect the value of his tokens. Representative Ro Khanna, a California Democrat and prominent crypto advocate, suggested on X that “Elected officials should be legally prohibited from holding meme coins.”

Some observers worry that these tokens could represent a national security risk, as they may enable foreign actors to acquire large amounts of the token, potentially influencing Trump’s decisions. These actors could buy tokens to curry favor or threaten to sell them, leading to a drop in the token’s price. They might even use cryptographic techniques to obscure their identities from everyone except Trump, suggests Ohlhaver from the Allen Lab.

The Emoluments Clauses of the Constitution were established to prevent such conflicts of interest, prohibiting a President from using their office for personal financial gain. Historically, gift-giving has been a prevalent corrupt practice among European leaders and diplomats. Some argue that since Trump’s token launch took place before his inauguration, he was acting as a private citizen. “It’s easier for them to launch these BEFORE he officially takes office,” commented crypto journalist Zack Guzmán on X. “Claiming Trump is profiting from the presidency and violating the Emoluments Clause would have been much simpler if it hadn’t been.”

Nonetheless, Ohlhaver argues that as long as Trump remains the owner of the tokens, a significant conflict of interest persists. “He still holds tokens that would appreciate in value if a foreign adversary artificially inflates them,” she asserts. Ohlhaver also believes that Trump’s meme coin undermines public understanding of money itself. “In today’s social media-driven world, it’s alarmingly simple to leverage one’s influence to create a new form of currency and grant it legitimacy,” she explains. “It’s vital to protect our national interests and ensure they serve the collective good, rather than the narrow interests of a privileged few profiting at the expense of the broader public.”

Andrew R. Chow’s book on cryptocurrency and Sam Bankman-Fried, Cryptomania, was published in August.